Arch Associates Reports the Following Comparative Balance Sheets and Income

question 143

Multiple Choice

Arch Associates reports the following comparative balance sheets and income statement information. $\begin{array}{c}\text { Arch Associates}\\ \text { Comparative Balance Sheets}\\\\\begin{array}{lr}&12 / 31 / \text { Year } 1 &12 / 31 / \text { Year } 2\\\text { Cash } & \$ 12,000&\$22,000\\\text { Accounts receivable } & 4,000&8,000 \\\text { Prepaid insurance } & 10,000&8,000 \\\text { Inventory } & 6,000 &2,000\\\text { Property, plant and equipment } & \underline{12,000}&\underline{10,000} \\\text { Total assets } & \underline{ \$ 44,000}& \underline{50,000} \\\text { Accounts payable } & \$8, 000&\$12,000 \\\text { Salaries payable } & 10,000&4,000 \\\text { Long term notes payable } & 8,000 &6,000\\\text { Stockholders' equity } & \underline{18,000}& \underline{28,000} \\\text { Total liabilities and equity } & \underline{ \$ 44,000}& \underline{\$50,000}\end{array}\end{array}$
$\begin{array}{lcr} & \begin{array}{l}\text { Income Statement } \\\text { Year Ended 12/31/Year 2 }\end{array} \\\text { Revenue } & & 70,000\\\text { Cost of goods sold } & & \underline{40,000} \\\text { Gross margin } & &30,000 \\\text { Operating expense } & & \underline{20,000 }\\\text { Net income } & & \underline{\$10,000} \\\end{array}$
Which of the following cash flows would be included under the operating activities section of the cash flow statement? (Assume the direct method is used.)

• A) Cash received from issuing bonds payable.
• B) Cash paid to purchase equipment.
• C) Cash receipts from dividends.
• D) None of these answers are correct.

Recognize the vast range of human facial expressions.

Understand the continuity of emotional experiences across species.

Comprehend the influence of cultural and contextual factors on interpreting emotions even without visual cues.

Understand the role of physiological theories in explaining the experience and expression of emotions.

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Definitions:

4th Worker

The concept or individual representing the fourth hire in a sequence, often associated with incremental contribution or changes in team dynamics.

Short Run

A period of time in economics during which at least one input, like plant size, is fixed and cannot be changed.

Production Costs

The total expenses incurred in the process of producing or manufacturing goods or services.

Inputs

Resources such as raw materials, labor, and capital used in the production process to create goods or services.